Not affiliated with The United States Office of Personnel Management or any government agency

Not affiliated with The United States Office of Personnel Management or any government agency

Retirement Benefits

Phased Retirement not Popular among Federal Employees

Recent data revealed by the OPM has highlighted that the phased retirement option offered to federal employees is not too successful. The number of workers who have opted for it is too low even despite the fact that the number has increased in the last few months. Phased retirement has been allowed by OPM since 2014 but it has not been implemented in all the agencies yet.

phased retirement How Many Federal Employees opted for Phased Retirement?

As per OPM data, only 90 federal employees have chosen to take the route of phased retirement until August 15, 2016. The agency revealed this information after a query was raised by Federal News Radio website. The agency also shared the fact that the employees from the Environmental Protection Agency and NASA showed a lot of enthusiasm for the program.

What is Phased Retirement?

Phased retirement is a program according to which the federal workers who are eligible for retirement are allowed to sign up for a program as per which they work part-time in their positions and collect half of their salaries. They also get only half of their accumulated retirement annuities. When the phased retirement of a federal worker is approved, he or she is required to spend 20 percent of their time in mentoring other employees who are supposed to take over the role played by the employee who is enjoying phased retirement.

The Law

The law was passed in the year 2012 by the Congress but the bill was approved by OPM at the end of 2014 only. The people eligible for the program would be 31 percent of the federal workforce by September 2017 and yet the number of people applying for the program is too low.

The Improvement

On January 31, 2016, the number of feds choosing this program was just 31. Now it is 90 which show some improvement over time. In January the data was unearthed by Government Executive website. Though the improvement is commendable, the numbers are still a disappointment for fed organizations that have supported phased retirement in the past.

The Choice

A reason behind the low number of federal employees in phased retirement program could be the fact that the federal agencies have complete control over whether they need to adopt the program or not. The Social Security Administration has not given the option to any of its employees.

Search for Public Sector Retirement Expert.

Receive the Best advice.

PSR Experts can help you determine if Public Sector Retirement is right for you or if you should look for alternatives.

The Best Advice creates
the best results.

Recent Articles

Are You Covered by FEDVIP? Here’s What Federal Employees Need to Know About Dental and Vision Benefits

Key Takeaways The Federal Employee Dental and Vision Insurance Program (FEDVIP) offers valuable supplemental coverage to federal employees and retirees,...

Why Federal Workers Are Snapping Up Military Buyback Opportunities

Key Takeaways Military buyback offers federal workers a way to convert previous military service into retirement benefits within the federal...

Federal Workers, Here’s How to Manage Your TSP for a More Comfortable Retirement

Key Takeaways Your TSP strategy can make a significant difference in your retirement comfort—smart management now helps you get the...

Search For Public Sector Retirement Expert

Receive the Best advice.

PSR Experts can help you determine if
Public Sector Retirement is right for you or if you should
look for alternatives.

The Best Advice creates

the best results.

Subscribe to our Newsletter

"*" indicates required fields

Our Readers Deserve The Best PSHB and USPS Health Benefits Guidance

Licensed insurance agents who understand PSHB, Medicare, and USPS Health Benefits Plan are encouraged to apply for a free listing.

This field is for validation purposes and should be left unchanged.

Book Phone Consultation

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Get In Touch

Stay up to date on the latest information about Public Sector Retirement.

The Best Advice Creates The Best